| Preface |
|
xiii | |
| About the Authors |
|
xv | |
|
|
|
xvii | |
| Introduction |
|
liii | |
|
|
|
1 | (60) |
|
|
|
1 | (1) |
|
1.1 Provisions of the Act |
|
|
1 | (1) |
|
1.2 Tender -- Proposal -- Denned |
|
|
2 | (1) |
|
|
|
3 | (3) |
|
1.4 Types of Tender Documents |
|
|
6 | (6) |
|
1.5 Modes of Inviting Tenders |
|
|
12 | (3) |
|
1.6 Prequalification of Tenderers |
|
|
15 | (2) |
|
1.7 Requirements of Notice Inviting Tenders |
|
|
17 | (3) |
|
1.8 Preparation and Submission of Tender |
|
|
20 | (2) |
|
1.9 Irregularity in Submission of Tenders |
|
|
22 | (1) |
|
1.10 Payment of Earnest Money |
|
|
23 | (1) |
|
1.11 Offer to Be Accompanied by Certain Documents -- When a Condition Precedent? |
|
|
23 | (1) |
|
1.12 Conditions Offered by Contractor in His Tender |
|
|
24 | (2) |
|
1.13 Withdrawal of Tender |
|
|
26 | (9) |
|
1.14 Consideration and Scrutiny of Tenders before Acceptance |
|
|
35 | (2) |
|
1.15 Decision to Accept a Tender |
|
|
37 | (1) |
|
1.16 Acceptance of Tender |
|
|
38 | (8) |
|
1.17 Correspondence between Acceptance and Offer |
|
|
46 | (3) |
|
1.18 Mode of Communication of Acceptance |
|
|
49 | (4) |
|
1.19 Revocation of Acceptance |
|
|
53 | (1) |
|
|
|
54 | (3) |
|
|
|
57 | (1) |
|
1.22 Misrepresentation and Fraud |
|
|
58 | (1) |
|
1.23 Bribery and Secret Commission |
|
|
58 | (1) |
|
1.24 Interference by High Court |
|
|
59 | (1) |
|
|
|
59 | (2) |
|
|
|
61 | (50) |
|
|
|
61 | (1) |
|
2.1 Provisions of the Act |
|
|
61 | (1) |
|
2.2 Essentials of a Valid Contract |
|
|
61 | (3) |
|
2.3 Proposal and Acceptance -- Meeting of Minds |
|
|
64 | (1) |
|
2.4 Who Are Competent to Enter into a Contract? |
|
|
65 | (3) |
|
|
|
68 | (11) |
|
|
|
79 | (4) |
|
|
|
83 | (4) |
|
2.8 Void and Voidable Contracts |
|
|
87 | (6) |
|
|
|
93 | (2) |
|
2.10 Collateral Contracts |
|
|
95 | (1) |
|
|
|
96 | (1) |
|
2.12 Performance of Reciprocal Promises |
|
|
96 | (1) |
|
2.13 Quasi-Contracts -- Work Done Without Contract |
|
|
97 | (2) |
|
2.14 Contract of Guarantee and Indemnity |
|
|
99 | (2) |
|
2.15 Contracts Which Need Not Be Performed |
|
|
101 | (1) |
|
2.16 Contract to be in Writing |
|
|
102 | (1) |
|
|
|
102 | (1) |
|
|
|
103 | (8) |
|
3 Contracts by Government |
|
|
111 | (88) |
|
|
|
111 | (1) |
|
3.1 Provisions of the Law |
|
|
111 | (1) |
|
3.2 Provisions Made in the Constitution of India |
|
|
111 | (1) |
|
3.3 Formality of Contracts on Behalf of the Government |
|
|
112 | (4) |
|
3.4 No Implied Contract under Art. 299 |
|
|
116 | (1) |
|
3.5 Contract by Correspondence May Be Valid |
|
|
117 | (2) |
|
3.6 Execution of a Formal Contract: When a Condition Precedent |
|
|
119 | (1) |
|
3.7 Effect of Non-Compliance with Requirements of Art. 299(1) |
|
|
119 | (3) |
|
3.8 Personal Liability of Government Officer Executing the Contract |
|
|
122 | (2) |
|
3.9 Constitutional Rights and Obligations of Parties to Government Contracts |
|
|
124 | (3) |
|
3.10 Types of Cases under Art. 226 |
|
|
127 | (15) |
|
3.11 Acceptance/Rejection of Tender -- Interference by Court -- When Justified -- Guiding Principles |
|
|
142 | (7) |
|
3.12 Conditions of Eligibility |
|
|
149 | (6) |
|
3.13 Modification of Eligibility Conditions |
|
|
155 | (4) |
|
3.14 Prequalification of Tenderers |
|
|
159 | (3) |
|
3.15 Modification of Tender Requirements Prior to Submission of Bids |
|
|
162 | (1) |
|
|
|
162 | (2) |
|
3.17 Fulfilment of Requisite Conditions of Tender Notice |
|
|
164 | (5) |
|
3.18 Negotiations Prior to Acceptance |
|
|
169 | (3) |
|
3.19 Acceptance/Rejection of Tenders |
|
|
172 | (6) |
|
3.20 Rejection of the Lowest Tender |
|
|
178 | (4) |
|
3.21 Rejecting All Tenders |
|
|
182 | (1) |
|
3.22 Nomination/Preference to a Class of Tenderers |
|
|
183 | (6) |
|
3.23 Declared Defaulter vis-a-vis Blacklisting -- Meaning of |
|
|
189 | (1) |
|
3.24 Blacklisting or Disqualification of Tenderers |
|
|
189 | (5) |
|
3.25 Cancellation of Contract |
|
|
194 | (1) |
|
3.26 Breach of Contract -- Writ Petition Not Maintainable? |
|
|
195 | (4) |
|
4 Interpretation of Contract |
|
|
199 | (42) |
|
|
|
199 | (1) |
|
4.1 Provisions of the Law |
|
|
199 | (1) |
|
4.2 What Is Interpretation? |
|
|
199 | (1) |
|
4.3 Distinction between Interpretation and Construction |
|
|
200 | (1) |
|
4.4 Kinds of Interpretation |
|
|
200 | (1) |
|
4.5 Authority with Whom Interpretation Rests |
|
|
201 | (1) |
|
4.6 Nature of Rules of Interpretation |
|
|
202 | (1) |
|
4.7 Rules of Interpretation |
|
|
202 | (8) |
|
4.8 Construction -- Strict v. Liberal and Literal v. Logical Construction |
|
|
210 | (2) |
|
4.9 "Force Majeure" Clause |
|
|
212 | (1) |
|
4.10 Doctrines of Interpretation |
|
|
213 | (28) |
|
5 Variations and Deviations |
|
|
241 | (58) |
|
|
|
241 | (1) |
|
5.1 Provisions in Standard Form Contracts |
|
|
241 | (1) |
|
5.2 Extra Work and Additional Work Distinguished |
|
|
241 | (2) |
|
5.3 What Constitutes a Variation? |
|
|
243 | (1) |
|
|
|
243 | (10) |
|
5.5 Government of India -- Planning Commission Form |
|
|
253 | (1) |
|
5.6 NITI Aayog Model Form -- Noteworthy Features |
|
|
253 | (3) |
|
5.7 Provisions in Standard Form Contract of Central and State Public Works, Railways, Military Engineering Services and Other Departments of the Government of India |
|
|
256 | (1) |
|
5.8 Right to Change Is Limited |
|
|
257 | (6) |
|
5.9 Valuation of Cost of Extra Work |
|
|
263 | (11) |
|
5.10 Decision Regarding Rate -- When Not Open to Arbitration? |
|
|
274 | (1) |
|
5.11 Change Orders Must Be Written |
|
|
275 | (5) |
|
5.12 Recovery in the Absence of Written Order -- When Possible? |
|
|
280 | (1) |
|
5.13 Instruction to Assist Contractors in Difficulty |
|
|
281 | (1) |
|
5.14 Extras Caused by Misrepresentation |
|
|
282 | (1) |
|
5.15 Extras Caused by Legal Provision |
|
|
282 | (1) |
|
5.16 When Contract Based on "Approximate Estimate" |
|
|
283 | (1) |
|
5.17 Extra Claims beyond the Scope of Agreement |
|
|
283 | (3) |
|
5.18 Owner's Liability to Pay for Changes Made |
|
|
286 | (1) |
|
5.19 Basis of Compensation for Extra Work |
|
|
287 | (1) |
|
5.20 Absence of Measurements -- Record Maintained by Contractor May Be Relied Upon |
|
|
288 | (1) |
|
5.21 Common Grounds on Which Extras are Claimed -- Illustrative Cases |
|
|
289 | (10) |
|
6 Time for Completion, Delay in Completion |
|
|
299 | (38) |
|
|
|
299 | (1) |
|
6.1 Provisions of the Law |
|
|
299 | (1) |
|
6.2 Mode of Specifying Time Limit |
|
|
300 | (2) |
|
6.3 Can Adequacy of Time Limit Be Questioned? |
|
|
302 | (1) |
|
6.4 Meaning of "Working Days" |
|
|
302 | (2) |
|
6.5 Meaning of "Time Shall Be Deemed to Be of the Essence of the Contract" |
|
|
304 | (5) |
|
6.6 When Is Time of the Essence of the Contract? |
|
|
309 | (4) |
|
6.7 When Time Ceases to Be of the Essence of the Contract |
|
|
313 | (6) |
|
6.8 Extension of Time for Delay |
|
|
319 | (2) |
|
6.9 Written Request by a Contractor -- a Condition Precedent |
|
|
321 | (1) |
|
6.10 Conditions under Which Time Should Be Extended |
|
|
322 | (1) |
|
6.11 Person Designated Should Grant Extension of Time |
|
|
323 | (1) |
|
6.12 Can Extension of Time Be Granted with Retrospective Effect? |
|
|
323 | (3) |
|
6.13 Conditional Extension of Time |
|
|
326 | (1) |
|
6.14 If Extension of Time Not Granted, Even for Just Reasons |
|
|
327 | (1) |
|
6.15 Extension of Time -- Effect on Compensation for Delay |
|
|
327 | (3) |
|
6.16 Procedure of Terminating Contract after Expiry of Time Limit for Completion |
|
|
330 | (2) |
|
6.17 Section 46 of the Indian Contract Act -- When Attracted |
|
|
332 | (2) |
|
6.18 Time and Place of Performance |
|
|
334 | (3) |
|
7 Penalty/Liquidated Damages |
|
|
337 | (24) |
|
|
|
337 | (1) |
|
7.1 Provisions of the Law |
|
|
337 | (4) |
|
7.2 Purpose of Liquidated Damages |
|
|
341 | (1) |
|
7.3 Penalty and Liquidated Damages Distinguished |
|
|
341 | (5) |
|
7.4 Stipulations Made in Construction Contracts |
|
|
346 | (2) |
|
7.5 Stipulation by Way of Fixed Sum -- If Justified? |
|
|
348 | (1) |
|
7.6 Alternative Method Suggested |
|
|
348 | (1) |
|
7.7 Liquidated Damages Clause -- When Can Be Evoked? |
|
|
349 | (2) |
|
7.8 Parties Free to Provide for Liquidated Damages to Cover Some Breaches and Not All |
|
|
351 | (1) |
|
7.9 Extension of Time and Penalty for Delay |
|
|
351 | (4) |
|
7.10 Liquidated Damages Provision -- A Mere Right to Sue |
|
|
355 | (1) |
|
7.11 Release from Liquidated Damages |
|
|
356 | (2) |
|
7.12 Right to Liquidated Damages Excludes Right to Unliquidated Damages |
|
|
358 | (1) |
|
7.13 Effect of Termination/Forfeiture |
|
|
358 | (1) |
|
|
|
359 | (1) |
|
7.15 Innovative Incentives in Road Maintenance/Improvements Contracts |
|
|
359 | (2) |
|
8 Quality of Work, Defects and Maintenance |
|
|
361 | (22) |
|
|
|
361 | (1) |
|
8.1 Provisions in Standard Form Contracts |
|
|
361 | (5) |
|
8.2 Contractor's Implied Obligations |
|
|
366 | (5) |
|
8.3 Interpretation of Specifications |
|
|
371 | (1) |
|
|
|
372 | (1) |
|
8.5 Removal of Improper Work |
|
|
373 | (1) |
|
8.6 Defects and Maintenance Clause |
|
|
373 | (5) |
|
8.7 Engineer's/Architect's Decision Final |
|
|
378 | (3) |
|
8.8 Distinction between Engineer (Certifier) and Arbitrator |
|
|
381 | (2) |
|
9 Measurement, Valuation and Payment |
|
|
383 | (32) |
|
|
|
383 | (1) |
|
9.1 Provisions of the Law |
|
|
383 | (6) |
|
9.2 Interim Payment Certificate (IPC) |
|
|
389 | (6) |
|
9.3 Failure to Make Interim Payments Constitutes Breach of Contract |
|
|
395 | (1) |
|
9.4 Writ Petition if Maintainable to Enforce Payment by State? |
|
|
396 | (2) |
|
9.5 Payment Made under Mistake |
|
|
398 | (3) |
|
9.6 Overpayments and Underpayments |
|
|
401 | (3) |
|
9.7 Conditions under Which Legal Set-Off May Be Allowed |
|
|
404 | (1) |
|
|
|
405 | (1) |
|
9.9 How Final Are Final Certificates? |
|
|
406 | (2) |
|
9.10 Claims Made after Payment of Final Bill -- If and When Maintainable? |
|
|
408 | (3) |
|
9.11 Accord and Satisfaction -- Illustrations |
|
|
411 | (1) |
|
9.12 Economic Duress under English Law |
|
|
412 | (3) |
|
|
|
415 | (44) |
|
|
|
415 | (1) |
|
10.1 Provisions of the Law |
|
|
415 | (1) |
|
10.2 Refusal to Perform Contract |
|
|
416 | (7) |
|
10.3 Breaches by the Contractor |
|
|
423 | (2) |
|
|
|
425 | (1) |
|
10.5 Defaults by Owner and/or Contractor |
|
|
426 | (5) |
|
10.6 Excuses for Non-Performance |
|
|
431 | (6) |
|
10.7 Doctrine of Frustration |
|
|
437 | (5) |
|
10.8 Effect of Frustration |
|
|
442 | (2) |
|
10.9 Consequences of Breach of Contract |
|
|
444 | (5) |
|
10.10 Express Provisions Included in the Contract |
|
|
449 | (10) |
|
11 Common Breaches of Contract |
|
|
459 | (24) |
|
|
|
459 | (1) |
|
11.1 Provisions in Standard Form Contracts |
|
|
459 | (1) |
|
11.2 Breaches by the Owner/Employer |
|
|
459 | (1) |
|
11.3 Failure to Hand over Possession of Site |
|
|
460 | (8) |
|
11.4 Delay in Supplying Working Drawings, Decisions |
|
|
468 | (2) |
|
11.5 Delay in Ordering Variations |
|
|
470 | (1) |
|
11.6 Delays in Carrying Out Work or Supplying Materials |
|
|
471 | (1) |
|
11.7 Delays Caused by Other Agencies |
|
|
472 | (1) |
|
11.8 Stoppage or Suspension of Work |
|
|
473 | (1) |
|
11.9 Failure to Pay as per Agreement |
|
|
474 | (2) |
|
11.10 Breach of Contract by Contractor |
|
|
476 | (5) |
|
11.11 Forms of Discharge by Breach |
|
|
481 | (2) |
|
12 Remedies for Breach of Contract |
|
|
483 | (72) |
|
|
|
483 | (1) |
|
12.1 Provisions of the Law |
|
|
483 | (1) |
|
|
|
483 | (1) |
|
|
|
484 | (2) |
|
12.4 Essential Conditions to Be Fulfilled by Injured Party to Be Entitled to Damages |
|
|
486 | (2) |
|
12.5 Distinction between "Compensation" and "Damages" |
|
|
488 | (1) |
|
|
|
489 | (2) |
|
12.7 General Principles of Assessment of Damages |
|
|
491 | (1) |
|
12.8 Assessment of Damages in Construction Contracts -- Breach of Contract by the Owner |
|
|
492 | (8) |
|
12.9 Delay in Completion/Termination of Contract by the Owner |
|
|
500 | (1) |
|
12.10 The Assessment of Damages Payable to the Contractor |
|
|
501 | (11) |
|
12.11 Facts and Circumstances Justifying Payment at the Originally Agreed Rates during the Extended Period |
|
|
512 | (2) |
|
12.12 Claim for Revision of Rates -- When Tenable? |
|
|
514 | (7) |
|
12.13 Alternative Remedy to Damages -- Quantum Meruit |
|
|
521 | (1) |
|
12.14 Breach of Contract by the Contractor |
|
|
522 | (2) |
|
12.15 Damages Difficult to Estimate -- No Ground to Award Nominal Damages |
|
|
524 | (1) |
|
12.16 Specific Performance -- Injunction to Restrain Breach |
|
|
525 | (1) |
|
12.17 Lien/Vesting Clauses |
|
|
525 | (3) |
|
|
|
528 | (1) |
|
12.19 Applicability of Section 74 to Security Deposit and Other Penal Stipulation |
|
|
528 | (1) |
|
12.20 Provisions Made in Construction Contracts -- Forfeiture of Earnest Money/Security Deposit |
|
|
529 | (7) |
|
12.21 Forfeiture of Security Deposit -- Loss Must Be Proved |
|
|
536 | (5) |
|
12.22 Wrongful Forfeiture |
|
|
541 | (2) |
|
12.23 Enforcement of Bank Guarantee |
|
|
543 | (12) |
|
|
|
555 | (14) |
|
|
|
555 | (1) |
|
13.1 Provisions in Standard Form Contracts |
|
|
555 | (1) |
|
13.2 Written Permission to Sublet or Assign When Necessary |
|
|
555 | (3) |
|
13.3 Agreement to Subcontract |
|
|
558 | (2) |
|
13.4 Provisions of General Contract -- How Far Applicable to Subcontract |
|
|
560 | (2) |
|
13.5 Relationship between Owner and Subcontractor |
|
|
562 | (2) |
|
13.6 Nominated Subcontractors |
|
|
564 | (3) |
|
13.7 Liability of Subcontractor under Indemnity Clause |
|
|
567 | (1) |
|
13.8 Rights of Materials Suppliers |
|
|
567 | (2) |
|
14 Contract between Owner and Architect/Engineer |
|
|
569 | (24) |
|
|
|
569 | (1) |
|
14.1 Provisions of the Law |
|
|
569 | (1) |
|
14.2 Contract to Be in Writing |
|
|
570 | (1) |
|
14.3 Conditions of Appointment |
|
|
571 | (2) |
|
14.4 The Scope and Extent of Engineer's and Architect's Authority |
|
|
573 | (7) |
|
14.5 Remuneration of the Engineer and Architect |
|
|
580 | (1) |
|
14.6 When Remuneration May Not Be Payable |
|
|
581 | (2) |
|
14.7 Manner of Payment of Remuneration |
|
|
583 | (1) |
|
14.8 Ownership of Plans and Copyright |
|
|
583 | (1) |
|
14.9 Position of the Engineer and Architect |
|
|
584 | (1) |
|
14.10 Liabilities of Engineers and Architects |
|
|
584 | (9) |
|
|
|
593 | (16) |
|
|
|
593 | (1) |
|
15.1 Provisions of the Law |
|
|
593 | (1) |
|
15.2 Causes of Action in Building and Engineering Contracts |
|
|
593 | (1) |
|
15.3 Relevant Provisions of the Indian Limitation Act 1963 |
|
|
594 | (1) |
|
15.4 Date on Which Cause of Action Accrued -- Illustrations |
|
|
595 | (11) |
|
15.5 Section 28 of the Indian Contract (Amendment) Act |
|
|
606 | (3) |
|
16 Claims, Disputes and Their Resolution by DRE/DRB/DAAB/Conciliation and/or Arbitration |
|
|
609 | (32) |
|
16.0 Introduction -- "Disputes Arising Out of Contract" |
|
|
609 | (1) |
|
16.1 Provisions in Standard Form Contracts |
|
|
609 | (1) |
|
16.2 FIDIC Form 1999/2017 Edition: Clauses 20 and 21 |
|
|
610 | (3) |
|
16.3 NITI Aayog Model Form |
|
|
613 | (2) |
|
16.4 Government of India Form |
|
|
615 | (1) |
|
|
|
616 | (2) |
|
|
|
618 | (5) |
|
|
|
623 | (5) |
|
16.8 After No Claim Certificate Is Given -- Can Claims Be Referred to Arbitration? |
|
|
628 | (3) |
|
16.9 Arbitration Clause in Original Contract Applies to Extra/Additional Work |
|
|
631 | (1) |
|
16.10 Two Contracts -- One Award -- if Valid? |
|
|
632 | (1) |
|
16.11 Arbitration Clause Survives Termination of Contract |
|
|
632 | (1) |
|
16.12 Transfer of Appointed Arbitrator -- Continuation of Proceedings before Him -- If and When Valid? |
|
|
633 | (1) |
|
16.13 Condition Precedent to Invocation of Arbitration Clause -- Mandatory |
|
|
633 | (1) |
|
16.14 The Law of Arbitration |
|
|
634 | (4) |
|
16.15 Investment Treaty Arbitration |
|
|
638 | (3) |
| Index |
|
641 | |